If you’re a small business owner, you may be wondering whether a business loan will show up on your personal credit report. The answer is yes, a business loan can show up on your personal credit report. That’s because the loan is technically a personal guarantee, meaning you are personally liable for the loan if your business cannot repay it.
A business loan is a type of financing specifically designed for businesses. It’s usually provided by a bank, credit union, or other lender and is secured against the business’s assets. This means that if the business fails to repay the loan, the lender can seize the assets as repayment.
Business loans are typically used to finance a business’s growth, such as to purchase new equipment, hire more employees, launch a marketing campaign, or open a new location. Borrowers generally need to have a good credit score and a solid business plan in order to qualify for a business loan.
A business loan will appear on your personal credit report in two ways. First, the business loan will appear as a trade line. This is basically a record of the loan, including the amount borrowed, the terms of the loan, and the lender’s contact information.
Second, if you have personally guaranteed the loan, then it will also appear as a personal debt on your credit report. This means that if your business fails to repay the loan, then the lender can come after you personally for repayment.
A business loan can affect your personal credit score in two ways. First, the loan will be included in your credit utilization ratio, which is the ratio of your total credit card balances to your total credit limits. The higher your credit utilization ratio, the more it will negatively affect your credit score.
Second, if you have personally guaranteed the loan, then it will also be included in your debt-to-income ratio. This is the ratio of your total monthly debt payments to your gross monthly income. The higher your debt-to-income ratio, the more it will negatively affect your credit score.
So, to answer the question, yes, a business loan can show up on your personal credit report. It will appear as both a trade line and a personal debt, and it can affect your personal credit score. That’s why it’s important to make sure that you understand all the terms of the loan before you sign the paperwork.
US Capital Source makes the application process seamless and available to every Business owner.
Submit all the necessary information to a number of potential lenders in one place! We eliminate the need to fill out multiple applications and allow you to compareloan options from different lenders. Reduce the risk of errors and time to secure a loan, as all the necessary information is collected in one application.
By submitting all the required information in one place, businesses can speed up the loan application process and receive a loan decision much faster so you can start to grow your business, more quickly.
Interest rates and repayment timeline tailored to your chosen offer. Help finance the expansion of your business.
With relationships across the country, US Credit Source is able to provide quick Lines of Credit less than two points above WSP Prime
Access working capital quick and on short-terms so you can pay back your financing sooner. Use what you need, when you need it. US Credit Source has various options for all Business Owners
Upgrade your Business with financing for Business Equipment. Equipment keeps the busy running and US Credit Source has access to fast capital for all your equipment financing needs
Receive invoice factoring and provide your business with a source of working capital to fund operations and growth.
A Government Grant program under the CARES Act. US Credit Source has helped thousands of Business Owners receive employee tax credit from 2020 and 2021